Friday, December 21, 2012
Milk to cost $8/gallon
Lost in the discussion of the fiscal cliff is the non-renewal of the current farm bill that will occur along with the cliff disaster. The US government meddles in the milk industry by setting a minimum price that dairy farmers are given for their milk in order to cover their costs of production and ostensibly to maintain stability in the market.
If the new farm bill does not get passed, by law the government will have to revert to 1949 prices which will make the cost of milk per gallon skyrocket to as much a $8. This is why government should have never meddled in the dairy industry in the first place.
Here's an idea: why not get the government out of the milk industry altogether and let the market determine milk prices? If the price of milk goes up without a farm bill, then other farmers will jump into the dairy industry in order to take advantage of the profit possibilities and that competition will depress the price naturally, all without any government interference.
I can't think of a single industry that our government doesn't see fit to regulate and/or meddle with. And that's why my resentment and contempt of government has never been greater. But as proved by the last election, a majority of Americans care not for free markets and capitalism, rather they just want the government to provide for them what they want.....I despise people like this.